India’s biggest food delivery service provider Swiggy IPO is in demand as soon as it opened for bids .in Swiggy IPO retail investors are most interested with $1.40 Billion with huge traffic .this will become the second most popular and large IPO for the year on Wednesday whose orders are continues until the market of Nov 8.
The price will vary with a value of Rs 350 -395 .
Company is interested to offer 10 percent of retail investment .whereas they are offering 75 percent
Swiggy’s IPO Details:
- Indian food delivery firm Swiggy is launching its Initial Public Offering (IPO) to raise $1.4 billion.
- The IPO opened for bids on Wednesday and will close on November 8.
- The price range for shares is Rs 371-390.
Expected Demand:
- Retail investors may show only modest interest in Swiggy’s IPO.
- Despite reducing its valuation twice, demand is expected to be low.
Market Conditions:
- India’s stock market has cooled down significantly.
- Indian equities fell in October and are expected to continue falling in November.
- Recent company earnings have been disappointing.
Global Factors:
- The US presidential election is causing uncertainty in the market.
- These factors may impact investor interest in Swiggy’s IPO.
IPO Details:
- Issue size: ₹11,327.43 crore
- Fresh issue: ₹4,499 crore
- Offer for sale: ₹6,828.43 crore (17.51 crore shares)
- Price band: ₹371-390
- Lot size: 38 shares
- IPO open: November 6-8
Subscription Status (as of 12:24 pm):
- Total subscription: 0.07 times
- Retail investors: 0.34 times
- Employee portion: 0.49 times
- Non-Institutional Investors (NIIs): 0.03 times
- Qualified Institutional Buyers (QIBs): Nil
Anchor Investors:
- Swiggy secured ₹5,085 crore from 151 anchor investors
- Investors include New World Fund, Government Pension Fund, Fidelity, BlackRock, and ICICI Prudential MF
Brokerage Views:
- Geojit: “Subscribe” rating on a long-term investment basis
- Motilal Oswal: “Subscribe for Long Term” with a caution for high-risk investors
Company Plans:
- Swiggy to use IPO proceeds for funding investments, technology, brand marketing, and inorganic growth.
Swiggy’s grey market premium (GMP) has seen some fluctuations. As of yesterday, it was at 5% or Rs 20, indicating that investors are willing to pay around Rs 410 per share in the grey market ¹. However, the latest update shows that Swiggy IPO GMP today is +18, which translates to a premium of Rs 18 in the grey market, and an estimated listing price of Rs 408 apiece ¹. This represents a 4.62% increase from the IPO price of Rs 390.
Key IPO Details:
- Issue Size: Rs 11,327.43 crore
- Price Band: Rs 371-390 per share
- Subscription Period: November 6-8
- Listing: Expected on November 13
Subscription Status (as of 10:42 am):
- QIBs: NIL
- NIIs: 1%
- Retail: 17%
- Employee: 24%
- Overall: 4% ¹
Investor Sentiment:
Analysts at Geojit and Motilal Oswal have given Swiggy’s IPO a “Subscribe” rating, citing its strong brand recall, diversified offerings, and promising industry outlook ¹. However, some experts recommend investing in the IPO only for the long term and consider it suitable for high-risk investors due to the company’s current losses ¹.
Market Sentiment:
- Grey market indicates a modest 5% premium on listing
- Bloomberg reports lukewarm retail interest expected due to rich valuation
- Foreign investors likely to be big buyers due to optimism about India’s consumption growth